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Consolidation journal entries for this adjustment

BBrine9y ago
Kindly assist with detailed explanation of the effect of the below adjustment in the consolidated FS. "On 1 December 20X0, Traveler acquired 80% of the equity interests of Captive for a consideration of $541 million. The consideration comprised cash of $477 million and the transfer of non-depreciable land with a fair value of $64 million. The carrying amount of the land at the acquisition date was $56 million. At the year end, this asset was still included in the non-current assets of Traveler and the sale proceeds had been credited to profit or loss. At the date of acquisition, the identifiable net assets of Captive had a fair value of $526 million, retained earnings were $90 million and other components of equity were $24 million. The excess in fair value is due to non-depreciable land. This acquisition was accounted for using the partial goodwill method in accordance with IFRS 3 (Revised) Business combinations."
BBrine9y ago#1
Dear Tutor, How are questions on this platform get to be responded to? Regards,
P2-D2P2-D2Tutor9y ago#2
Hi Brine, I usually answer the questions on this forum but I will only deal with specific issues and will not write out detailed explanations of full parts to a question, as you request above. If you can be specific about what it is you do not understand about the question above then I can answer it for you. Thanks
BBrine9y ago#3
Thanks i need to know the journal entries for the land included in the consideration in the group accounts.